A Company That Uses the Perpetual Inventory System Sold Goods

question 151

Multiple Choice

A company that uses the perpetual inventory system sold goods for $1,000 to a customer on account.The company had purchased the inventory for $400.Which of the following journal entries correctly records the cost of goods sold?

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Definitions:

Renewable Resources

Natural resources that can replenish over time, such as sunlight, wind, rain, tides, and geothermal heat.

Fertile Soil

Soil that is rich in nutrients and organic matter, enabling it to support vigorous plant growth.

Natural Gas

A fossil fuel consisting mainly of methane, used as an energy source for heating, cooking, and electricity generation.

Nonpoint Source

Pollution that does not originate from a single, identifiable source, but rather from many diffuse sources, often related to rainfall moving over and through the ground.